Young Car Buyers Shift Preferences from Japanese to U.S. and
Korean Brands

SANTA MONICA,
CA--March 20, 2013: American auto
brands are gaining strength with younger buyers in the
U.S., while their Japanese rivals have taken a big step back, reports
Edmunds.com, the premier resource for car shopping and automotive
information. According to an analysis of new car retail registrations
from R. L. Polk & Co., American brands accounted for 36.8 percent of
cars bought by Americans age 25 to 34 in 2012, up from a share of
35.4
percent in 2008. Meanwhile the share of Japanese brands for the same
age
group plummeted from 50.6 percent to 42.9 percent during that period.

“U.S. automakers have burst onto the scene in recent years
with small,
fuel-efficient and affordable cars that really appeal to a young set
of
buyers”

But even with the incremental success of American brands, Edmunds.com
found that the exodus from Japanese cars by young buyers is turning
mostly toward South Korean brands. About 10 percent of new cars
purchased by 25-to-34 year olds in 2012 carried South Korean
nameplates,
more than doubling the rate for this age group since 2008.

"U.S. automakers have burst onto the scene in recent
years with small,
fuel-efficient and affordable cars that really appeal to a young set
of
buyers," says Edmunds.com Sr. Analyst Jessica Caldwell.
"But while
Detroit might be chiseling away at the Japanese grip on Gen X and Gen
Y,
South Korean brands are taking big hacks. Not only are the Koreans
making better cars for young people, but they've also
worked to make
credit available to young buyers who still don't have
solid credit
history."

Retail Registrations by Age, 2012 vs. 2008

European Brands

Japanese Brands

South Korean Brands

U.S. Brands

Age

2012

2008

Change

2012

2008

Change

2012

2008

Change

2012

2008

Change

18-24 YEARS OLD

7.1%

6.0%

1.1%

42.6%

52.3%

-9.8%

12.6%

5.8%

6.8%

37.6%

35.7%

1.9%

25-34 YEARS OLD

9.8%

8.8%

1.0%

42.9%

50.6%

-7.7%

10.1%

4.9%

5.1%

36.8%

35.4%

1.5%

35-44 YEARS OLD

10.9%

9.3%

1.5%

42.1%

47.5%

-5.4%

9.3%

4.7%

4.5%

37.2%

38.0%

-0.8%

45-54 YEARS OLD

10.4%

8.9%

1.5%

40.1%

45.7%

-5.6%

10.1%

5.2%

4.9%

38.9%

39.8%

-0.9%

55-64 YEARS OLD

9.5%

8.1%

1.3%

41.3%

44.5%

-3.2%

9.9%

5.5%

4.4%

39.0%

41.6%

-2.6%

65-74 YEARS OLD

8.3%

6.6%

1.6%

40.2%

41.7%

-1.4%

9.8%

5.8%

4.0%

41.4%

45.6%

-4.2%

75+ YEARS OLD

6.5%

4.8%

1.8%

39.0%

38.2%

0.8%

9.7%

6.1%

3.7%

44.5%

50.7%

-6.2%

OVERALL

9.9%

8.5%

1.4%

40.4%

44.6%

-4.2%

9.5%

5.0%

4.5%

39.7%

41.6%

-1.8%

Source: R.L. Polk & Co.

The South Koreans' progress with young buyers reflects
their overall
growth in the U.S. market. Korean brands represented 9.5 percent of
all
new retail registrations in the U.S. in 2012, almost twice as much as
their share of 5.0 percent in 2008.

European car labels are flexing their own muscles in the U.S. market
as
well, accounting for 9.9 percent of new car registrations in the U.S.
last year, up from 8.5 percent in 2008. Like the South Koreans,
European
carmakers have delivered consistent growth among all age groups since
2008, with the biggest successes among older car buyers, thanks to
Baby
Boomers choosing European luxury cars post-retirement.